Experienced Trust Deed Investor Ready to Invest ASAP?
Please complete the Investor Questionnaire form (click here) and email to Clint@AAAPrivateMoney.com and within 24 hours we will call you to discuss your investment parameters and get you added to our investor circulation for immediate funding possibilities.
Potential Investor Return on Investment:
Generally our hard money loan terms have interest rates from 8-12%. All of this monthly interest is payable to the investor minus a very reasonable $20.00 per check/loan servicing fee. AAAPM does not take a "spread" on the interest rate so the full yield is passed directly through to our investors.
Amount of Investment: $100,000
Int. Rate on 1st Trust Deed: 10%
Monthly interest payment: $833.33
($813.33 net after servicing fee)
In turbulent economic times all investments have increased risks. In order to hedge against these risks our usual Loan to Value (LTV) is 70% or less.
Mitigating Risks for Hard Money Investors
Investors, and repeat investors, are a key part of our ongoing business model. We appreciate our investors and have worked hard to develop loan criteria, and a stringent Loan to Value ratio, that helps to protect your investment.
For Example: If a property appraises for $1,000,000, we will only lend $700,000 or less.
Leaving $300,000 in room for decline or potential over-valuation. By keeping a low LTV we allow for significant declines in the value of real estate to occur while giving us as much cushion as possible to handle the market downturn in case of foreclosure.
The current debacle in banking is a perfect example of why we feel our lending philosophy is the most sound in the industry. Banks usually place high value on the borrower's credit and income history and as recently as 2007 many banks were still willing to loan nearly full appraised value of the loan collateral (property) as long as the borrower appeared to have been reliable in the past. This system leaves little room for error, if the valuation of the home is too high, coupled with a high LTV, and the borrower defaults - this puts the lender in a very bad position.
Our philosophy is that if the loan amount is significantly less than the collateral's value the borrower has real incentive to make timely payments and as such will be less likely to default on the loan.